Insurance is necessary for our everyday lives but it can be pretty confusing if you’re not a trained professional in the industry. You may start hearing what you should and shouldn’t buy, but some of the advice surrounding insurance could end up costing you money because it’s not based on facts. To help you debunk the rumors and improve your bottom line, we’ve come up with the top myths surrounding home, life, and auto insurance.
Red cars are more expensive to insure.
It is unknown where this myth started, but the color of your automobile is not a factor for insurance rates and coverage.
Base your home insurance policy on the real estate market value.
When buying coverage, you should base the value on how much it would cost should you have to rebuild the home (materials and labor).
Umbrella insurance is for rich people.
Umbrella insurance adds liability insurance to your existing policies. For example, if Fido gets a little excited and accidentally bites the neighbor…you might need additional liability insurance for any damages not covered currently.
I don’t need renter’s insurance.
Take inventory of everything in your home that you would lose given a natural disaster, fire or theft. You may find that, even if it is not much, compensation for the loss of your belongings would be worth it.
Comprehensive coverage (auto) protects everything.
The name for this coverage, sadly, is extremely misleading. Comprehensive coverage covers damages because of the following:
Collisions with animals
You aren’t responsible for trespassers.
In the event that a trespasser sustains an injury on your property, you will be held liable unless objects such as pools, trampolines, and “attractive nuisances” are protected properly.
Insurance can be complicated but the more educated you are on what’s real and can affect your bottom line, the better off you (and your wallet) will be.
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